By Federico Maccioni and Jana Choukeir
Dubai — Emirates Airlines reported a 66% drop in first-half net profit on Thursday as airspace closures and disruptions caused by the US-Israeli war with Iran hit travel across the Middle East and sent jet fuel prices soaring.
The Dubai-based carrier posted a net profit of 3.3-billion dirhams ($903m) for the six months to September 30, while revenue fell 13% to 56.9-billion dirhams despite what it described as a solid contribution from its cargo business and “enduring travel demand across its markets”.
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The war has severely disrupted travel across the region this year, triggering widespread flight delays, cancellations and diversions as several countries intermittently closed their airspace.
Gulf carriers, among the world’s largest international airlines, have gradually restored operations, but recent attacks on Saudi Arabia by Yemen’s Iran-aligned Houthis have clouded prospects for a full recovery.
Lower passenger traffic and capacity
“The first six months of 2026-27 brought significant challenges to Emirates’ operations as intermittent airspace restrictions and closures across the region tested the airline’s operational agility, while government travel advisories reshaped consumer choices and travel flows,” Emirates Group, the airline’s Dubai-based parent, said in a statement.
Emirates said it had restored operations across 91% of its network by end-September, though passenger traffic and capacity remained significantly below levels recorded a year earlier.
It carried 21.8-million passengers during the first half, down 22% from the same period last year.
Available seat kilometres (ASK), the industry’s standard measure of passenger-carrying capacity, fell 17%. Its average passenger seat factor, which measures the proportion of available seats filled by paying passengers, declined to 72% from 79.5%.
Jet fuel prices soar
Iran has not carried out any strikes on UAE soil since May. The Gulf state did intercept an Iranian drone over its territorial waters in August, however.
The war has also driven jet fuel prices to about twice their prewar levels, making airlines reluctant to enter into new fuel hedging contracts that allow them to lock in future fuel prices and protect themselves against sudden increases.
Emirates said its fuel costs before hedging gains jumped 60% year on year in the first half, despite overall operating costs, including fuel, declining 2% in line with reduced operations.
Gains of 7.1-billion dirhams from the airline’s fuel price risk management strategy helped cushion the effects of higher prices, limiting the net increase in fuel costs to 13% over the period.
The Emirates Group’s cash position stood at 54.1-billion dirhams at end-September, down from 59.6-billion dirhams six months earlier, as it tapped its reserves to support business needs, including predelivery payments for aircraft and servicing existing debt obligations.
“We’ve weathered challenges before,” said Emirates Group chair and CEO Sheikh Ahmed bin Saeed Al Maktoum.
“With our strong cash position and solid foundation built up over the years, the group is well-placed to navigate the headwinds of volatility and high fuel prices,” he said, adding that the group was entering the second half of the financial year with “measured optimism”.
Reuters
